NST

Northern Star ResourcesASX:NST Stock Report

Market Cap

AU$10.8b

7D

1.4%

1Y

-37.7%

Updated

18 Sep, 2021

Data

Company Financials +
NST fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health3/6
Dividends2/6

NST Overview

Northern Star Resources Limited engages in the exploration, development, mining, and processing of gold deposits in Australia.

Northern Star Resources Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Northern Star Resources
Historical stock prices
Current Share PriceAU$9.27
52 Week HighAU$8.99
52 Week LowAU$17.03
Beta-0.047
1 Month Change-1.49%
3 Month Change-6.36%
1 Year Change-37.66%
3 Year Change6.31%
5 Year Change106.92%
Change since IPO4,113.66%

Recent News & Updates

Shareholder Returns

NSTAU Metals and MiningAU Market
7D1.4%-4.0%-0.02%
1Y-37.7%10.0%27.0%

Return vs Industry: NST underperformed the Australian Metals and Mining industry which returned 10% over the past year.

Return vs Market: NST underperformed the Australian Market which returned 27% over the past year.

Price Volatility

Is NST's price volatile compared to industry and market?
NST volatility
NST Beta-0.047
Industry Beta0.93
Market Beta1

Stable Share Price: NST is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NST's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20003,383Stuart Tonkinhttps://www.nsrltd.com

Northern Star Resources Limited engages in the exploration, development, mining, and processing of gold deposits in Australia. It also sells refined gold. The company holds interests in the Pogo, Kalgoorlie, KCGM, Jundee, Thunderbox, and Carosue Dam operations, as well as Paulsens, Tanami, and Bronzewing projects.

Valuation

Is Northern Star Resources undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NST (A$9.27) is trading below our estimate of fair value (A$24.29)

Significantly Below Fair Value: NST is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NST is good value based on its PE Ratio (10.5x) compared to the Australian Metals and Mining industry average (12.1x).

PE vs Market: NST is good value based on its PE Ratio (10.5x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: NST's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NST is good value based on its PB Ratio (1.4x) compared to the AU Metals and Mining industry average (2.7x).


Future Growth

How is Northern Star Resources forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-5.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NST's earnings are forecast to decline over the next 3 years (-5.8% per year).

Earnings vs Market: NST's earnings are forecast to decline over the next 3 years (-5.8% per year).

High Growth Earnings: NST's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NST's revenue (11.3% per year) is forecast to grow faster than the Australian market (5.3% per year).

High Growth Revenue: NST's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NST's Return on Equity is forecast to be low in 3 years time (6.4%).


Past Performance

How has Northern Star Resources performed over the past 5 years?

30.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NST has a large one-off gain of A$1.7B impacting its June 30 2021 financial results.

Growing Profit Margin: NST's current net profit margins (37.4%) are higher than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: NST's earnings have grown significantly by 30.7% per year over the past 5 years.

Accelerating Growth: NST's earnings growth over the past year (299.7%) exceeds its 5-year average (30.7% per year).

Earnings vs Industry: NST earnings growth over the past year (299.7%) exceeded the Metals and Mining industry 43.2%.


Return on Equity

High ROE: NST's Return on Equity (12.9%) is considered low.


Financial Health

How is Northern Star Resources's financial position?


Financial Position Analysis

Short Term Liabilities: NST's short term assets (A$1.8B) exceed its short term liabilities (A$771.6M).

Long Term Liabilities: NST's short term assets (A$1.8B) do not cover its long term liabilities (A$2.5B).


Debt to Equity History and Analysis

Debt Level: NST's debt to equity ratio (8.3%) is considered satisfactory.

Reducing Debt: NST's debt to equity ratio has increased from 0.03% to 8.3% over the past 5 years.

Debt Coverage: NST's debt is well covered by operating cash flow (163.6%).

Interest Coverage: Insufficient data to determine if NST's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Northern Star Resources's current dividend yield, its reliability and sustainability?

2.05%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NST's dividend (2.05%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: NST's dividend (2.05%) is low compared to the top 25% of dividend payers in the Australian market (5.41%).


Stability and Growth of Payments

Stable Dividend: NST has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: NST's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.6%), NST's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NST's dividends in 3 years are forecast to be well covered by earnings (47.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Stuart Tonkin (45 yo)

4.92yrs

Tenure

AU$2,743,969

Compensation

Mr. Stuart Peter Tonkin, BEng (Hons) has been the Chief Executive Officer at Northern Star Resources Limited since October 29, 2016. He has been Managing Director and Director of Northern Star Resources Li...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD2.00M) is about average for companies of similar size in the Australian market ($USD2.29M).

Compensation vs Earnings: Stuart's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: NST's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: NST's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NST insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 57.1%.


Top Shareholders

Company Information

Northern Star Resources Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Northern Star Resources Limited
  • Ticker: NST
  • Exchange: ASX
  • Founded: 2000
  • Industry: Gold
  • Sector: Materials
  • Market Cap: AU$10.793b
  • Shares outstanding: 1.16b
  • Website: https://www.nsrltd.com

Number of Employees


Location

  • Northern Star Resources Limited
  • 388 Hay Street
  • Level 1
  • Subiaco
  • Western Australia
  • 6008
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 08:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.